Trade Adjustment Assistance for Workers (CRS Report for Congress)
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| Release Date |
Revised Jan. 9, 2015 |
| Report Number |
R42012 |
| Report Type |
Report |
| Authors |
Benjamin Collins, Analyst in Labor Policy |
| Source Agency |
Congressional Research Service |
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Summary:
Trade Adjustment Assistance for Workers (TAA) provides federal assistance to workers who have been adversely affected by foreign trade. It was most recently authorized by the Trade Adjustment Assistance Extension Act of 2011 (TAAEA; Title II of P.L. 112-40). Under TAAEA, the program operated under one set of eligibility and benefit provisions through December 31, 2013, and then reverted to a more restrictive set of provisions on January 1, 2014. The TAA program was scheduled to be phased out beginning January 1, 2015, but the Consolidated and Further Continuing Appropriations Act, 2015 (P.L. 113-235) provided funding for the program and allowed it to continue full operation through FY2015.
To be eligible for TAA, a group of workers must establish that they were separated from their employment either because their jobs moved outside the United States or because of an increase in directly competitive imports. Workers at firms that are suppliers to or downstream producers of TAA-certified firms may also be eligible for TAA benefits. Under current law, only production workers are eligible. Under the TAAEA provisions that were in place through December 31, 2013, both production and service workers were eligible. Service workers who were certified prior to the change in eligibility may continue to receive benefits.
To establish eligibility for TAA benefits, a group of affected workers must petition the Department of Labor (DOL) and a DOL investigation must verify the role of foreign trade in the workers' job loss. Once a petition is certified by DOL, covered workers may apply for individual benefits. These benefits are funded by the federal government and administered by the states through their workforce systems. The specific group of benefits and services to which a worker is entitled is determined by the date of the petition that covers the worker. Benefits include a group of benefits and services to assist workers in returning to work.
Training subsidies are available if no suitable employment is available and a certified worker meets other criteria. Eligible training options include a variety of public and private programs.
Employment services are provided to TAA-certified workers through state workforce agencies. These can include case management, career counseling, job search assistance, and other non-training services.
Job search and relocation allowances are available to workers who seek employment outside of their commuting area.
Trade Readjustment Allowance (TRA) is an income support for TAA-certified workers who have exhausted their unemployment insurance (UI) and are enrolled in an eligible training program. TRA payments are equal to the workers' final UI benefit.
Wage insurance is available to certified workers age 50 and over who obtain reemployment at a lower wage. The wage insurance program provides a cash payment equal to 50% of the difference between the worker's new wage and previous wage, up to a two-year maximum of $10,000.
This report provides background on the TAA program. It begins with descriptions of eligibility and benefits under both the current and previous provisions. The report then presents information on application activity, benefit usage, and participants' employment outcomes.
